0404 | Do IPOs Hurt Innovation?

LDRLB

Interesting new research from Shai Bernstein at Stanford University’s Graduate School of Business suggests that companies that go public experience a significant decline in innovation post-IPO. Top talent leaves and the talent that stays is typically less productive.

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If Snap’s Strategy Is Building New Products, It Won’t Live Up to Its IPO Price

Harvard Business Review

In light of Snap’s IPO , there has been an immense amount of speculation about the long-term viability of the company’s strategy. Two elements of it have caught some attention: Snap’s statement that it is a “camera company,” and its intention to reinvest its revenues in developing new products that will take significant time and expense, but which it believes it can develop faster than competitors. Don’t Confuse Products and Platforms.

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Three Headwinds for Facebook's IPO

Harvard Business Review

I have used the social network for eight years and continue to be impressed with Mark Zuckerberg's focus on product and his vision for the internet. But equity investing and product use are very different things. And despite all of Facebook's user support, investors should be skeptical of the company's pricey IPO. Over the past couple of years, I've become close with a handful of web product managers. There is a lot of emotion behind the Facebook IPO.

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How Google Has Changed Management, 10 Years After its IPO

Harvard Business Review

From early on, Google employees were encouraged to spend a significant portion of their time on interesting side projects, with the idea that some of these projects would become new products.

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Beyond Meat, and Facebook’s Pivot to Privacy

Harvard Business Review

Youngme, Felix, and Mihir talk about the Beyond Meat IPO and whether plant-based meat alternatives like Beyond Burger and Impossible Burger will become mass-market products. Growth strategy Social platforms Economics & Society IPO AudioThey then discuss Facebook’s announcement that it is pivoting to put greater emphasis on user privacy.

The Flawed Premise Behind the Candy Crush IPO

Harvard Business Review

As you may know, King Digital, the company behind the blockbuster game Candy Crush Saga , is about to IPO. Jim Surowiecki in the New Yorker and Felix Salmon at Reuters (and many, many others) have analyzed the IPO. Salmon thinks that the market is so frothy that companies have to have a credible plan to IPO just to seem viable as an acquisition. In his interview with HBR, Salganik explained that having a cultural product of good quality is not enough.

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Yelp's IPO Will Test the Flaws in Its Business Model

Harvard Business Review

Yelp's IPO filing comes hot on the heels of successful IPOs and high valuations for Angie's List and Groupon. But new ways of searching for products may start to change this dynamic. Yelp's timing reflects both a tech-friendly market and the company's current position as the dominant consumer-review web site. Yelp has 22 million reviews, and the supposedly imminent onslaught of competing review sites has yet to materialize. But is Yelp really poised for long-run success?

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Geoffrey Moore: A third interview, by Bob Morris

First Friday Book Synopsis

Geoffrey Moore is Managing Director, Geoffrey Moore Consulting; a venture partner with Mohr Davidow Ventures, Chairman Emeritus, TCG Advisors, The Chasm Institute and The Chasm Group; and a member of the Board of Directors, Akamai Technologies and several pre-IPO Companies.

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Innovation Is as Much About Finding Partners as Building Products

Harvard Business Review

A123 Systems promised to be a clean tech success with a soaring IPO in 2009. But the startup could not keep pace with the development and scale of established battery makers, and production defects led to a $55 million recall in 2012 and contributed to the company’s bankruptcy later that year. Innovation Product development Regulation Digital ArticleHave you ever stopped to ponder the true complexities involved with trying to create a viable, safe, autonomous vehicle?

0801 | How To Work With Millennials with Brad Szollose

LDRLB

Brad is a former C-level executive of a publicly traded company that he co-founded which went from entrepreneurial start-up to IPO in less than three years. How to Separate Presence from Productivity.

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No One Asked My Opinion…But $100 Billion for What?

Management Excellence

As of this writing, the world is abuzz with the expected Facebook IPO. The number $100 billion is being floated and passed around (probably by those who stand to benefit from a big IPO), and whether real or wild speculation, that’s a number that gives one cause to pause.

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Why Good-Better-Best Prices Are So Effective

Harvard Business Review

operator of theme parks including SeaWorld and Busch Gardens, recently filed for an initial public offering (IPO). First, a key challenge is few of us have actually seen a demand curve for our product — let alone an asterisked price point. Marketing IPO

Why the Rules of the Entrepreneurial Game Are Changing

Leading Blog

Internet traffic and was the first Internet IPO. They will create products and services that make our food safer and our commute to work easier. Your partnership skills may very well be the determining factor in the success or failure of your product.

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When the Leader Needs Help

Great Leadership By Dan

You’ve been up to your ears in the details of planning and developing new product features yourself or with your partner, but now you have too many growing management responsibilities to do as much of that.

When a Product Fails, Find a New Direction

Harvard Business Review

Your company has just developed an amazing new product. Having observed management teams for decades as a mutual fund and portfolio manager, I have watched numerous companies vanish after a disastrous launch of a product or service. Cephalon's IPO was in 1991, part of the second wave of biotechnology companies to sell shares to the public. As a shrewd manager, Baldino leveraged the company's sales force by adding related products to its core franchise.

Hackers and Hummingbirds: Leadership Lessons from Facebook CEO Mark Zuckerberg

Terry Starbucker

In his IPO letter Mark Zuckerberg wrote: “I started off by writing the first version of Facebook myself because it was something I wanted to exist. You are recognized and respected based on your contributions to the improvement of the product; your résumé or your age doesn’t matter.

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Making the Turn: 10 Warning Signs You aren’t Shifting from Founder to Leader

N2Growth Blog

Maybe you’re prepping for the IPO. When you started out you rightly focused on developing your unique new product, service, or solution. By Thomas Brattle Gannett and Dr. Greg Giuliano. You came up with an awesome idea. Your singular focus has been to make it real.

Why We Shouldn’t Worry About the Declining Number of Public Companies

Harvard Business Review

The number of listed firms can decline because of three developments: 1) bankruptcy, failure, or closure of listed firms, 2) delisting of firms going private or acquired, and 3) decrease in number of initial public offerings (IPOs). westend61/Getty Images.

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Some of the Most Successful Platforms Are Ones You’ve Never Heard Of

Harvard Business Review

Then the banks decided to turn the associations into for-profit companies, IPO them, and cash out. MasterCard IPO’d in 2006, and Visa followed two years later. That standard may then become a platform for many firms that produce complementary products and their customers.

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Why the Fail-Fast Approach Isn’t Right for Breakthrough Ventures

Harvard Business Review

You develop minimally viable products, keep testing different market and product hypotheses, and pivot based on the market feedback you get. You expect to fail repeatedly and hope to eventually get to a product-market fit. It enables the product to function.

What to Do When Your Boss Says No

Harvard Business Review

The company started as a single store, but about a decade later it was a national chain on the heels of filing an IPO. Ethan talked about all the times he’d been told no in his career: on plans to merchandise products, sophisticated inventory control systems, and basic training handbooks. He started mentally breaking down the product: It wasn’t a dress, but some cloth in a nice pattern. Creativity Productivity Digital Article

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What Wall Street Wants to See From Twitter’s Executives (and Why It’s Wrong)

Harvard Business Review

Between now and the IPO, every bit of information about the company’s finances and other metrics will be closely scrutinized. You can expect to see endless discussions in the press about revenue, valuation, user growth, and product. Research shows that firms’ management teams influence the success of their IPOs. One study found that “stock option compensation was positively related to IPO performance, as measured by investor valuations.”

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Why Unicorns Are Struggling

Harvard Business Review

When financial services company Square priced its IPO at $9 a share last November, well under the $15+ price that private investors paid the year before, it was a cold shower of reality for the 6-year-old company.

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Should Everyone Be Allowed to Invest in Private Tech Companies?

Harvard Business Review

In addition, given their quest for organization leanness, digital startups seek investors who have the expertise to help outsource their noncore business functions, such as production, distribution, marketing, and payroll processing. Beata Bernina/Getty Images.

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NewTV Is the Antithesis of a Lean Startup. Can It Work?

Harvard Business Review

NewTV is the creation of Jeffrey Katzenberg, whose track record includes head of production at Paramount, chair of Walt Disney Studios, and cofounder of DreamWorks. Tech IPO prices and subsequent trading prices were disconnected from revenue and profits. IPOs dried up.

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A Quiet Revolution in Clean-Energy Finance

Harvard Business Review

In the last year, however, early-stage investments in clean energy production technologies have fallen substantially (see the table at the end of this piece for more detail). A star example is Google, which raised a mere $40 million in private funding before its IPO at a $23 billion valuation. Despite these gloomy headlines, three developments in the sector give us hope that the revolution in clean energy production is far from dead: 1.

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How to Prepare for a Crisis You Couldn’t Possibly Predict

Harvard Business Review

Most of us don’t oversee huge IPOs, but sooner or later, every team faces an unexpected crisis: technology breaks, a competitor makes a disruptive move, a promising project fails, a key employee quits, consumers have a negative reaction to a new product—the list goes on. This has played a role in many failures, from the Facebook IPO to the Deepwater Horizon oil spill. Phil Ashley/Getty Images.

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Why Mega-Mergers Are Back in Vogue for Internet Companies

Harvard Business Review

For many consumer tech companies, this post-IPO pressure on financial returns is too high. However, many of them go public at a point when they only have one product, even if it’s still unrefined.

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Twitter Isn’t Just Another Social Company

Harvard Business Review

Last week, Twitter’s management subtly let the world know of their upcoming IPO in 140 characters or less. And in almost all of these cases, Twitter is just being thrown into the role of the next social tech IPO. Instead of discussing Twitter as a business, and its strengths and weaknesses, most pundits are simply throwing Twitter into a broad tech category and speculating about IPO valuation.

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Three Things that Actually Motivate Employees

Harvard Business Review

The most motivated and productive people I’ve seen recently work in an older company on the American East Coast deploying innovative technology products to transform a traditional industry. To a person, they look astonished when I ask whether their dedication comes from anticipation of the money they could make in the event of an IPO. Their products are early stage, which means daily frustrations as they run through successive iterations.

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The Two Traits Every Entrepreneur Needs

Harvard Business Review

At that point it had seven different products, and it was on the verge of going out of business. The first thing I did was figure out which of the seven products we could shut down, and why this made sense strategically. One of our products involved loan syndication.

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The Facebook Investor You Never Want to Become

Harvard Business Review

A few weeks ago, I read an article in the Wall Street Journal about people who had opened up their very first investment accounts just to get in on the Facebook IPO. It also seems likely that he's kicking himself today, as the value of the stock has dropped almost 25% since its May 17 IPO.

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Under Fire, Microfinance Faces Falling Out of Favor

Harvard Business Review

Microfinance has come under fire in the past 18 months, triggered in part by SKS Microfinance's IPO. The IPO, the new regulations, and a call for Dr. Yunus's retirement from Grameen Bank have led some to doubt the whole notion of microfinance. They're about market creation: When the poor earn more income, they consume more products.

Why Microsoft Is Willing to Pay So Much for GitHub

Harvard Business Review

Strategic value, on the other hand, has little to do with any of those things and almost everything to do with how a company’s product and/or market position help or hinder another company’s (usually a bigger one’s) ability to be successful. MySQL’s main product was a free, open-source database that was extremely easy to use and provided the back-end functionality for just about every website in existence. Drew Angerer/Getty Images. Microsoft’s $7.5

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A simple cure for the Buzzword Bingo | Rajesh Setty

Rajesh Setty

We used agile method to build the product using the latest open source stack and some mashups with a few online services. The product was conceived in one of those Barcamps where we were discussing Blue Ocean Strategy and suddenly one of them suggested that with a little bit of knowledge arbitrage from the trucking industry, we could enable a product that will take advantage of the “ wisdom of the crowds &# and also capitalize on the “ long tail &# phenomenon.

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Why Financial Statements Don’t Work for Digital Companies

Harvard Business Review

On February 13, 2018, the New York Times reported that Uber is planning an IPO. Twitter reported a loss of $79 million before its IPO, yet it commanded a valuation of $24 billion on its IPO date in 2013. For an industrial company dealing with physical assets and goods, the balance sheet presents a reasonable picture of productive assets and the income statement provides a reasonable approximation of expenses required to create shareholder value. steven moore for hbr.

The Best Platforms Are More than Matchmakers

Harvard Business Review

Where traditional business models sell products and/or services, matchmaking models sell reduced transaction costs. Choice One means going it alone to build product and find buyers. The power of digital platforms to profitably disrupt industries continues to impress.

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Hire a Great Chinese Engineer by Impressing His Girlfriend's Mom

Harvard Business Review

After all, China produces 600,000 engineering graduates each year, and as a former Google product manager I thought knew how to attract them. They wanted to know what my plans were for IPO.

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The Most Innovative Companies Have Long-Term Leadership

Harvard Business Review

The typical enterprise software startup that IPOs is at least 7 years old (to say nothing of those that try and fail). In the year before Google IPO’d, it did about $962 million in revenue. Call 2014 the year of innovation.

Startups Can’t Revolve Around Their Founders If They Want to Succeed

Harvard Business Review

Even when startups have great products and customer interest, they struggle with long-term growth. Founders may lack the skills and interest to lead those activities effectively — what they typically love is dreaming up and building products.

Every Fast-Growing Company Has to Combat Overload

Harvard Business Review

Norwegian encouraged its employees, in other words, to adopt an owner’s mindset: a powerful sense of responsibility for all of their employees, customers, products and decisions.

Don’t Build Your Startup Outside of Silicon Valley

Harvard Business Review

It’s time spent not building product. Tech companies see engineers move to and fro frequently, integrate their products tightly, and often find themselves acquiring or merging with counterparts. The entrepreneurial zeitgeist today is hard to ignore.

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Xbox Live: How an Old Tech Company Built a Social Media Juggernaut

Harvard Business Review

Amid the flood of social media IPOs during the last 12 months, another "old guard" tech company has quietly built one of the most dominant, fiercely loyal and profitable social media businesses to date. They deserve credit for not only successfully competing in the brutal gaming arena with breakthrough product innovations Xbox 360 and Kinect, but also by breakthrough business model innovation via Xbox Live.

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